Discussions between Microsoft and Yahoo took place earlier this week. Could it be key to counter Google's Internet Domination?

First meaningful act towards making a new deal after last year’s antics where Yahoo walked away from Microsoft’s uninviting buyout opportunity.

Yahoo CEO Carol Bartz and Microsoft CEO Steve Ballmer met up and discussed matters on search and advertising partnerships. Though, it is still not obvious whether agreements with each of the companies will go through as both Yahoo and Microsoft have not made any comments which was preliminary and informal, according to the NY Times.

One agreement that could possibly be made is Microsoft selling search ads for Yahoo while Yahoo sells Premium display ads on everything Microsoft own to make the deal fair.

These talks came as a shock to many people including me not just because of what happened just over a year ago. During the last six months, Micorosft had been aggressively pushing forward with codename “Kumo” even taking Yahoo’s head of engineering for the Search and Advertising Technology Group, Qi Lu to head the operation.

In addition, both Yahoo and Microsoft are discussing sharing content with Demand Media. Demand Media for those who don’t know work on niche websites and publish articles and videos. Yahoo are selling display advertising for Demand Media which talks are going on further and Demand Media with Microsoft, talks are happening but they are not too productive though there is always hope that they will end up on an agreement. 0 

If Yahoo and Microsoft did work as a team, it would be very good as Google persist in governing both searching and online advertising marketing.  Currently, Google own 60% of the market, Yahoo owns around 20% and Microsoft owns less that 15%.

Yahoo’s new chief, Carol Bartz who took over in January, is very strong minded and will not sell a single part of Yahoo without thoroughly thinking it through. I personally think that with her in Yahoo, they are strong and stand a better chance of catching up with high flyers Google with her in charge of dealings.

Tags: ads, advertisements, advertising, Carol Bartz, CEO, Demand Media, Google, Internet, Kumo, market, Microsoft, niche, Steve Ballmer, Technology, Yahoo